Chyron Corporation Reports 1998 First Quarter Results; Third Consecutive Quarter of Profitability.

MELVILLE, N.Y.--(BUSINESS WIRE)--May 4, 1998--Chyron Corporation (NYSE:CHY), manufacturer of the world's premier character generators, graphics equipment and routing and automation systems, today announced financial results for first quarter 1998. These results reflect the Company's third consecutive quarter of profitability (see attached table.)

Net sales for the first quarter ended March 31, 1998 increased 18.3% to $21,525,000 from $18,201,000 for the comparable quarter of 1997. This increase is primarily due to increased product sales in the U.S. of the Pro-Bel routing and automation products.

Gross profit increased to $10,722,000 or 49.8% of net sales for the first quarter ended March 31, 1998 from $8,150,000 or 44.8% of net sales for the same 1997 period. The increase in gross profit as a percentage of sales stems mainly from increased sales of higher margin software product in the first quarter of 1998 as compared with the first quarter of 1997.

Research and development expenses, net of amounts capitalized and amortized, increased to $2,510,000 or 11.7% of net sales versus $1,512,000 or 8.3% for the comparative 1997 quarter. This increase in research and development spending reflects management's strategy to reposition the Company to supply the U.S. television market with high definition and digital multi-channel standard definition equipment.

Operating income for the quarter ended March 31, 1998 amounting to $494,000, showed substantial improvement over the operating loss of $1,264,000 (including non-recurring costs of $675,000) for the first quarter of 1997.

Net income for the quarter ended March 31, 1998 was $34,000 or $0.00 per share versus a net loss of $1,096,000 or ($0.03) per share reported for the comparable 1997 quarter.

Commenting on the Company's performance, Chyron President and Chief Executive Officer Edward Grebow stated, "Generally, first quarter results for television broadcast equipment companies are the weakest of the year because broadcasters typically postpone large capital expenditures until the unveiling of new products at the annual National Association of Broadcasters' (NAB) Convention, held every April."

"The postponement of orders has been especially true for first quarter 1998 with the introduction of digital television equipment. Due to the Federal Communications Commission's mandate for all television operators to switch from analog to digital and HDTV transmissions beginning in December 1998, Chyron continues to focus its efforts on developing new products, many of which were introduced to great fanfare at this year's NAB."

Mr. Grebow continued, "Our new product launches have just begun and new products will be released throughout the year. For example, in the first quarter we unveiled a full screen video clip capture and instant playback system for Chyron's iNFiNiT! graphics workstations called CLYPS. Meanwhile, we began shipping Concerto, a full-featured compositing system designed to support unlimited layers of video and audio for Windows 95 and NT workstations. Concerto works in any resolution, including HDTV. Additionally, we released the Pro-Bel Freeway router, a system designed to bring a new level of flexibility to both post production and broadcast facilities. The first quarter of 1998 also saw agreements with PRIMESTAR for a $1.8 million routing and monitoring system contract and an exclusive arrangement with SporTVision, to market its AIRf/x(TM) basketball software to television broadcasters."

"During the second quarter, we are presenting the new Chyron Aprisa series of advanced NT-based still and clip store systems while Pro-Bel is planning to launch a new high definition digital router and a new master control switcher."

"The second half of 1998 holds the potential for additional revenues with the introduction of Duet, a new media processing platform. Duet, which will be available for both standard definition and high definition video, provides the primary component for a variety of real-time applications within an open system framework, making it Chyron's digital TV solution for real-time video productions."

Mr. Grebow concluded, "To offset our continuing investment in engineering, Chyron has maintained very stringent fiscal controls over operating and overhead costs."

"We believe that, given the need for television broadcasters to upgrade to digital equipment, Chyron's net income should increase during the coming year." -0- The statements in this release may contain forward-looking statements relating to such matters as anticipated financial performance, business prospects, technological developments, new products, research and development activities and similar matters. The Private Securities Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company's actual results to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. -0- These risks and uncertainties are detailed in the Company's Annual Report on Form 10K for the year ended December 31, 1997, which are incorporated herewith by reference. -0- Chyron Corporation develops, manufactures, markets and supports a broad range of equipment, software and systems that facilitate the production and enhance the presentation of live and pre-recorded video, audio and other data. Chyron's products enable users to create and manipulate text, logos and other graphic images using special effects such as 3D transforming, compositing and painting; manage, monitor and distribute video, audio and other data signals; control edit processes and automate broadcast equipment. -0-

                          CHYRON CORPORATION
      Condensed Consolidated Statements of Operations (Unaudited)
                 (In thousands except per share data)


                                                Three Months Ended
                                                     March 31,
                                               1998           1997
                                               ----           ----
Net Sales                                   $21,525        $18,201
Gross Profit                                 10,722          8,150
Non-recurring Costs                               0            675
Operating Expenses                           10,228          8,739
Total Operating Expenses                     10,228          9,414
Operating Income (Loss)                         494         (1,264)
Income and Other Expense, Net                   359            330
Income (Loss) Before Provision for Income
 Taxes                                          135         (1,594)
Income Taxes/Equivalent Provision (Benefit)     101           (498)
Net Income (Loss)                               $34        ($1,096)

Earnings (Loss) Per Common Share-Basic and
 Diluted                                      $0.00         ($0.03)

Weighted Average Number of Common Shares
  Outstanding                                32,606         32,387

Weighted Average Number of Common and
  Common Equivalent Shares Outstanding       32,606         32,740
-0-

           Condensed Consolidated Balance Sheets (Unaudited)
                            (In thousands)

                                        March 31,        December 31,
                                           1998              1997
Assets:
Current Assets                          $53,579            $57,114
Total Assets                            $91,733            $94,080

Liabilities and Shareholders' Equity:
Current Liabilities                     $16,007            $18,159
Total Liabilities                        37,479             40,118

Shareholders' Equity                     54,254             53,962

Total Liabilities and Shareholders'
 Equity                                 $91,733            $94,080

CONTACT: Chyron Corporation:

Edward Grebow,

President and Chief Executive Officer

[phone]

or

Patricia Lampe,

Chief Financial Officer and Treasurer

(516) 845-2011

or

Chyron's Investor Relations Counsel:

Focus Partners LLC 

Harvey A. Goralnick

[phone]